A percentage-of-sales model forecasts that cost of goods sold will remain at 80% of sales.If sales revenues are expected to grow by 20% next year,cost of goods sold:

Question

Quizplus · Accepted Answer

If sales revenues are expected to grow by 20%, then cost of goods sold will also grow by the same percentage, since it remains at 80% of sales. Therefore, cost of goods sold will grow by 20%.

A Percentage-Of-Sales Model Forecasts That Cost of Goods Sold Will